A Kenyan FX platform is targeting to help traders cut foreign exchange costs with a platform that shows exchange rates offered by various banks helping customers choose the most competitive rates on the market.
The platform introduces transparency in an otherwise opaque market where customers had to either call many banks or walk from bank to bank in search of affordable rates.
Meta Capital is a technology company based in Nairobi has designed SharpFX , a platform that allows registered users to access the best negotiated foreign exchange rates provided by partner banks.
With this platform anyone looking to transact in foreign exchange can do so from the comfort of their computer without the need to haggle over the phone with a bank dealer.
The foreign exchange market for big customers has remained largely inefficient to due to poor information exchange as rates are offered in the treasury departments of banks allowing some players to quote large spreads. Big buyers are therefore able to save a lot of money even from a small difference in spreads.
“Our partner banks will display their best rates on the platform and based on what your preferred rate is, you will select the rate you want from the list and the respective bank will make contact to confirm the order details for processing,” says Mr Sila Obegi, chief executive of Meta Capital.
The platform brings together individuals and businesses looking to transact in foreign exchange at better than average rates, and banks that are ready to offer the best exclusive exchange rates to the users on the platform.
On this platform you get the best rates available at no extra cost or fee, and the banks get access to clients who are looking to transact. “We as the platform provider get a small commission from the banks margin on each transaction,” he says.
This ensures no costs or fees are passed on down to the clients for using the platform. This service is targeted towards individuals and businesses that transact a minimum of 1 million KES at a go on a regular basis.
Clients will be required to sign a dealing mandate with the partner banks in order to create a Foreign Exchange transactional account. A Foreign Exchange transactional account is an account created for the purpose of processing forex transactions from one bank to another.
Kenya’s foreign exchange market has grown significantly in the last ten years on account of rising trade between Kenya and the international market. Volumes of foreign money passing through banks has surged providing huge earning for local banks.
The transactional account has no setup fee or maintenance fee and exists solely to enable processing of forex transactions from one bank to another.
Users can access the platform at sharpfx.metacapital.co.ke